Despite potential reinstatement of reporting requirements, NSBA continues to urge Congress and lawmaker to act to repeal the Corporate Transparency Act (CTA).
FOR IMMEDIATE RELEASE
Thursday, Jan. 23, 2025
Contact Molly Day
202-552-2904 | mday@NSBAadvocate.org
CTA Reporting is Back on for Small Businesses
Washington, D.C. – Earlier today, Thursday, Jan. 23, 2025, the U.S. Supreme Court issued a stay against the Fifth Circuit Court of Appeals latest ruling that temporarily barred the Financial Crimes and Enforcement Network (FinCEN) from enforcing Beneficial Ownership Information (BOI) reporting. Long story short: small businesses who are required to submit their BOI reports are now, once again, required to submit those reports.
FinCEN has yet to weigh in on what kind of timeframe they will adopt, but NSBA is strongly urging flexibility and ample be time provided to small businesses given the constant back-and-forth they have been dealing with regarding the Corporate Transparency Act (CTA).
Below is a statement from NSBA President and CEO Todd McCracken.
“While we appreciate the Supreme Court intervening on this issue—something we have been seeking in our own lawsuit—this creates even more uncertainty for our members and the millions of small businesses we represent. This burdensome rule could result in well-intending, but justifiably confused, small businesses to pay fines up to $591 per DAY and up to two years of jail time.
“And while any member of NSBA as of March 1, 2024 is exempt from this rule, NSBA cannot stand by and let this unfair burden ensnare countless other small businesses.
“I cannot stress enough what a major problem this back-and-forth and the massive uncertainty it creates is for the millions of small businesses across this country. I cannot stress enough how important it is that Congress move forward on efforts to delay and repeal the CTA.
“NSBA filed the first lawsuit in the nation against the CTA, and we will continue to pursue every legal avenue to overturn this unconstitutional rule. We will push for Congress to do the right thing and see the CTA for what it truly is: a burden of uncertainty and confusion that will do very little to actually stop money laundering.
“On behalf of the millions of small-business owners who will now be subject to the BOI regime, I implore FinCEN to proceed with prudence and patience in setting any new deadline.”
Click here for NSBA’s CTA Resource page.
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.
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